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On April 1,2017,Planet Services Received $8,000 in Advance of Performing

Question 16

Multiple Choice

On April 1,2017,Planet Services received $8,000 in advance of performing the services from a customer for three months of service - April,May and June.What would be the journal entry to adjust the accounts at the end of May?


A) Debit Service Revenue $2,667,and credit Unearned Revenue $2,667.
B) Debit Unearned Revenue $5,333,and credit Service Revenue $5,333.
C) Debit Unearned Revenue $8,000,and credit Service Revenue $8,000.
D) Debit Service Revenue $5,333,and credit Accounts Receivable $5,333.

Correct Answer:

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